17053.86.
(a) For each taxable year beginning on or after January 1, 2010, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to ____ percent of the qualified expenditures paid or incurred by the qualified taxpayer for the production of a qualified music recording in California.(b) For purposes of this section:
(1) “Budget” means an estimate of all expenses paid or incurred during the production period of a qualified music recording.
(2) “Music recording production company” means a company engaged in the business of producing music recordings.
(3) “Qualified expenditure” means amounts paid or incurred to purchase or lease tangible personal property used within this state in the production of a qualified music recording and payments for services performed within this state in the production of a qualified music recording.
(4) “Qualified music recording” means a recording of music, poetry, or spoken-word performance made in California, in whole or in part, that is produced by a music recording production company for distribution to the general public with a minimum production budget of ____. The term “qualified music recording” shall not include the audio portions of dialogue or words spoken and recorded as part of a motion picture, video, theatrical production, television news coverage, or athletic event.
(5) “Qualified taxpayer” means a taxpayer who has paid or incurred qualified expenditures.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit is exhausted.
(d) No deduction shall be allowed to a taxpayer for the amount of qualified expenses for which a credit is allowed to that taxpayer under this section.